4Ms of Operations

• Methods. Represent the day-to-day operations
• Methods. Describes how an entrepreneur will run the business from all facets of the business
• Machines. "Best friend" of manpower in producing goods and offering services
• Manpower. Qualified employees that can handle operational functions
• Materials. Dependable suppliers of raw materials and supplies
• Dynamics of Traffic Lights Developing a Business Model

  The Green Lights

  • Help develop business models and eventually succeed
• Dynamics of Traffic Lights Developing a Business Model

  The Red Lights

  • Signals that entrepreneurs should be wary of
• Target high-value customers. Easy to Find
• Target high-value customers. Willing to pay for a price that will reasonably profit the entrepreneur
• Target high-value customers. Easy to persuade with the least promotional effort
• Offers products or services with great value. Offer excellent customer experience to customers
• Offers products or services with reasonable profits. To achieve reasonable profits: increase mark up or decrease costs
• Satisfying the customer becomes too costly and irrational. Entrepreneurs want to satisfy the customers that they forget that the sales cost exceeds the profits.
• Being a market leader is difficult to sustain. Entrepreneurs should have continuous improvement on their product or services.
• Return on Investment takes too long and too small. Return on Investment should be earned at the right time and at the right amount.